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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 95.57

+0.7%

Nov 28 9:30 AM EST

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To: Skeeter Bug who wrote (24499)	7/11/1999 3:41:00 AM
From: Dave B	Read Replies (1) of 93625

Skeeter, The other fallacious argument you present is that somehow Dell doesn't have to commit any money to RDRAM because of their model. That is incorrect. Dell doesn't take delivery of product until they actually need it, but they absolutely have to commit to buying product (in large quantities) if they expect to be able to have it delivered when they need it. Do you think that they just decide on a Friday to build an RDRAM-based system and parts are waiting on the doorstep on Monday? They certainly have to commit to specific volumes well in advance of the need, and their are usually penalties (reduced discounts, longer delivery times, etc.) involved for not meeting commitments. You are right, however, in saying that they don't actually have to send the check until after the parts arrive (which is actually why they can sell much cheaper [profitably] than anyone else since they get paid by their customer before they pay for the parts). But the commitment is still binding. I just found this on the Dell thread from June 29: techstocks.com To: Mike Van Winkle (134892 ) From: TTOSBT Tuesday, Jun 29 1999 1:53AM ET Reply #134922 of 136183 Re: "One thing I am sure of is I don't have the information to evaluate what Dell does. I would suggest that their competitors don't either and that is how Dell would prefer to have it." Mike you've got the proper perspective on this. All one really has to remember when surmising if Dell is going down the right path on this is; didn't Dell circumambulate the old channel way of doing business and win (over everyone else)? I think your statement..."Dell already sells refurbished units, they may have perfected their process from that experience." is profound and correct here. Perhaps the analysts and talk in the near future will be praising how genus Dell was with their foresight in the auction of refurb's? Not sure how true it is but I heard today from someone at work that word from the pacific is, Dell has made a HUGE motherboard order with ACER for 133MHz FSB(Front-side-bus speed) in preparation for INTEL's high end chips slated for this September. Also Intel may have be too conservative in their recent delay of the .18m chips which may be out July instead. It's all suppose to be based on the DRDRAM Rambus memory which is still murky and unsure of yet? We may yet see that summer rally real soon? I hope! You are certainly not asleep Mr. Van Winkle. <g> TTOSBT Which was then followed by: To: freeus (135640 ) From: TTOSBT Wednesday, Jul 7 1999 1:54AM ET Reply #135650 of 136183 Re: "3x5's" 1) Has Dell purchased 200-300K 133MHz FSB motherboards DRDRAM (Direct Rambus DRAM) from Acer for September? And why? 2) How is the LCD (All-in-one PC) sales going in Japan? 3) Why has Dell not chosen to use a huge buyback stock plan like IBM? Instead it expands the outstanding float which is diluting share holder value? TTOSBT So Dell will absolutely have some skin in the game. Dave

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